The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-07-08
the ENGLISH SYNDICATE LOAN.

the ENGLISH SYNDICATE LOAN.
In o recent article we minated
that first duty of Ministers was to
straighten out the finances of the
Kingdom, more especially in relation
to the English Syndicate Loan,
which is considerably tangled. Since
then we have had an opportunity of
examining the English bond, which
has been sent out for signature by
the Minister of Finance and Regis
trar of Public Accounts, and we
have no hesitation in saying that
upon its face it is not in accordance
with law, and should not be recog-
nized by the Government. Its
heading is enough to condemn it
utterly, were there no defects in the
body of the bond itself. The head
ing reads (taking one bond as
sample):-
"Bond No. 397. .f100
"Hawaiian Six per cent Sterling
Loan, 1886, for f200, 900, being
part of loan for 100000,
authorized by Act of the Hawaiian
Legislature, dated lst September,
1886, and amendatory Act, dated
October 10, 1885,"
No such loan is authorized by the
Acts quoted, and therefore the
Bond in question is illegal on its
face, and consequently worthless.
Following the above quotation and
the agents name, Matbeson & Co.,
3 Lombard street, London, is an
extract from the law authorizing the
Minister of Finance to issue bonds
for 81, 100000 United States gold
coin of the present standard or its
equivalent, the instrument pro-
ceeds -
"And whereas there have been is
sued in representation of 81 ,000,-
900, part of the above mentioned
amount of 100000, Bonds for
f200, 900 sterling (being the equi-
valent of the said amount of 81 ,000,-
900 in gold coin of the United States
of the present standard) of the fol-
lowing amounts and numbers,
namely
Then follow the numbers and de-
nomination of the bonds from / to
1928, being f7,900 in f20 bonds,
1896 in f100 bonds, and 81 IN $500
bonds, making total of 100000
which the bond on its face declares
to be the equivalent of 81, 000,0 in
gold coin of the United States of the
present standard--a clean shave of
S32, 900, as previously explained by
the BULLETIN.
The bond also recites the condi-
tons of the loan as advertised by
Matheson & Co., and considerably
leaves blanks for the signature of
the Minister of Finance and the
Registrar of Public Accounts. We
say considerably" because the
coupons attached to the bond dis
pense with the name of the latter
officer, and have the name of Paul
p. Kanoa printed in them. This is
not q signature as contemplated by
the law, nor does it comply with its
requirements in other respects. The
Minister of Finance signs the bond
itself, together with the Registrar of
Public Accounts, but the Registrar
of Public Accounts alone signs the
coupons. This is the form of sigma
ture on the regularly issued half
million six per cent bonds made in
Honolulu. This portion of the loan
has been issued in bonds of the
denomination of $4,000, $1,000,
$500 and 500. And the form of
the bond itself, which is in COM
pliance with the statute, is entirely
different from the English syndicate
bond. We have thus two sets of
bonds for the same loan, which, if
adopted, would lead to endless
trouble and confusion in the loan
account, not to speak of the loss
that would be entailed upon the
country.
But there is another and q fatal
defect in the English bond. 1t is
mutilated. The January coupon